Sales of private homes in June dropped 25 percent month-on-month to 1,182 units, excluding Executive Condominiums (EC).
This means a total of 4,562 units were transacted in Q2 2011, about 27 percent more than the 3,595 new homes sold in the previous quarter.
“It is not surprising to see the decline in private housing transactions in June, due to the June school holidays, when many families may be abroad for holidays,” said Adam Tan, Corporate Communications Manager of PropNex.
“In addition, the decline in private housing transactions can also be attributed to the HDB announcing that they will be building 25,000 new flats in 2011, so some potential first-time buyers in the middle income bracket may switch to the public housing market instead.”
“Furthermore, with more than 10,000 new private homes expected to enter the market in the second half of 2011, consumers may be waiting for more choices in other locations across the island,” he added.
Meanwhile, the robust transactions in the April-June period were primarily achieved by suburban leasehold projects. Among the major projects that sold well during the second quarter are Eight Courtyards (488 units sold), Hedges Park (309 units sold) and Terrasse (229 units sold).
“High-end projects located in the Core Central Region (CCR) maintained a steady level of interest throughout the quarter, averaging at around 30 units per month and sold at median prices of S$2,500 psf and above. Nevertheless, buying is still very selective among both local and foreign HNWIs,” noted Joseph Tan, Executive Director for Residential at CB Richard Ellis (CBRE).
“In June, the highest floor rate of S$4,362 psf was achieved for a unit in Le Nouvel Ardmore. In May, a unit in The Marq On Paterson Hill was sold at a record price of S$5,842 psf and in April, a unit in The Orchard Residences was sold at S$4,799 psf.”
He added that residential prices in Q2 increased 1.9 percent quarter-on-quarter, according to the URA’s preliminary forecasts.
Moving forward, Tan believes “developers will continue to launch new suburban leasehold projects. However, we expect the take-up in Q3 2011 to be lower than Q2 2011’s volume.”
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